Considering the holes are from a 223, I would assume the target is pretty respectably small, maybe 6" at the most.
Tow II, that's pretty good shooting for a non magnifying optic. A question for you- do you have access to 100, 150yds or are you limited to 50 yds?
It's interesting that some rifles will shoot low, then high, and then drop on a regular trajectory. I am wondering if you are going to see your shots fall lower, or rise and then flatten out in trajectory when the distance increases a bit.
I have noticed that though the rifling on my Sport is 1:8 twist, it prefers 55gr. ammo. I am wondering if you have a 1:9 or a 1:8 barrel. If you have the 1:9, you will see that group shrink by 25% by switching to 55gr ammo.